Schemes at Money Laundering Via Crypto to be Prevented by South Korean Regulator

The crypto business has seen an increase in crimes involving digital currency over time. This is due to transactions involving virtual assets that may be completed without the involvement of other parties, which makes it simple for cybercriminals to thrive.

Regulators are, nevertheless, paying closer attention to the cryptocurrency market. They want to use cryptocurrency to stop the growth of illegal operations like money laundering and terrorism funding.

These goals have prompted the majority of regulatory agencies to establish legislative frameworks to monitor and guarantee AML or anti-money laundering compliance.

In order to ensure AML compliance in virtual assets, the South Korean watchdog has hardened its approach. The Financial Service Commission (FSC), the nation’s financial watchdog, is now concentrating on crypto whales as a response.

In order to stop the exploitation of virtual assets in money laundering, it is focused on investors with crypto worth over 100 million won which is equivalent to $70,000. The FSC noted that having more virtual assets and stablecoins raises the possibility of money laundering.

According to a local media source, the regulator now follows new anti-money laundering standards. This entails carefully monitoring the stablecoin as well as other virtual asset whales with enormous holdings.

The utilization of stablecoins for money laundering is growing, the report claims. This is more obvious with those stablecoins that are mostly used by the general public. Additionally, the research noted that a digital asset listed individually might not meet the listing requirements of other crypto managers.

More procedures are being prepared by the South Korean watchdog to impose its compliance standards in the crypto industry. The regulator focuses on the movement of big deposits in addition to keeping an eye on whales and their online activity.

The FSC intends to keep track of checking tags on users of virtual coins who make substantial deposits. It declared that consumers who conduct significant cryptocurrency transactions would be closely monitored. It will maintain a check on a quarterly basis that will aid in highlighting any noteworthy changes in users’ holdings over the course of the quarter.

South Korea has set itself apart with its rigid stance on digital-related regulations. The nation’s special mission in cryptocurrency operations control was sparked by the downfall of the Terra (LUNA) ecosystem.

Several holders lost their invested funds and expectations for return on their investments when Terra collapsed. The regulators were forced to act as a result of the destructive impact on the players and the crypto market as a whole.

In August, the regulator intends to expedite its consideration of 13 bills pertaining to virtual assets, the FSC chair announced. These were still ongoing with the National Assembly of South Korea.

The nation’s financial regulators have already stepped up their attempts to safeguard investors’ money. Additionally, they are attempting to flag cryptocurrency laws by the start of 2024 at the latest.